Form 4: Lincoln National Corp Director Acquires Phantom Stock Units

Director Eric G. Johnson acquired 1,409.33 phantom stock units of Lincoln National Corp (LNC) on March 31, 2024, as part of a deferred compensation plan.

Summary

• On March 31, 2024, Eric G. Johnson, a director of Lincoln National Corp (LNC), acquired 1,409.33 phantom stock units.
• These units were obtained as a quarterly payment of board retainer and fees under the Deferred Compensation Plan for Non-Employee Directors.
• Each phantom stock unit is equivalent to one share of LNC Common Stock.
• The price per share was $31.93.
• Following the transaction, Johnson beneficially owns 77,267.4 derivative securities.
• This includes 1,264.77 shares acquired through dividend reinvestment since the reporting person's last report.
• The phantom stock units are payable solely in shares of the company's common stock at resignation or retirement, and the reporting person can transfer the account into an alternative investment account at any time.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating stability and alignment of interests. The sentiment is neutral to slightly positive.

Positives

• The acquisition of phantom stock units reflects continued director engagement and investment in the company.
• The Deferred Compensation Plan aligns director compensation with the long-term performance of the company.
• Dividend reinvestment indicates a positive outlook on the company's future performance.

Future Outlook

The phantom stock units are payable in shares of the company's common stock upon resignation or retirement, indicating a long-term alignment of interests between the director and the company.

Industry Context

Director compensation through stock and phantom stock units is a common practice in publicly traded companies to align the interests of directors with those of shareholders. This encourages long-term value creation and responsible corporate governance.

Comparison to Industry Standards

• Deferred compensation plans are widely used among publicly traded companies to attract and retain qualified directors.
• Companies like Prudential Financial (PRU) and MetLife (MET) also utilize similar compensation structures for their board members.
• The amount of phantom stock units granted is within the typical range for director compensation at companies of similar size and market capitalization.

Related Party Transactions

• The acquisition of phantom stock units by a director is a related party transaction, as it involves compensation to a member of the company's board.

Stakeholder Impact

• The transaction has a minimal direct impact on stakeholders.
• It reinforces the alignment of director interests with shareholder value.

Key Dates